Minnesota First-Time Home Buyer Tips
Minneapolis, MN: Being a first time home buyer, and buying your first home is an exciting time. There is no reason to be worried, and here are a few tips to help guide the way.
Find a lender – Get Pre Approved for a Mortgage Loan.
Unless you are paying cash, you are going to need a loan. Finding and choosing the best loan and lender to handle the loan for you should not be taken lightly. Randomly taking to whoever answers the phone at 1-800 Big Bank, or thinking you can get a mortgage in 10 minutes via your cell phone are generally huge mistakes.
Read my whole separate article on Shopping For a Lender
Once you find your Loan Officer, they will review various programs with you, go over your maximum purchase price, payment comfort level, and any other requirements. Expect to send in a minimum of your Photo ID, last 30-days of paystubs, last two-months bank statements, last two-years W2’s, and at least your last filed Federal tax return.
With a mortgage pre-approval in hand, you can meet with the Real Estate Agent, and know exactly how much house you can afford to buy, so you are not wasting time looking at homes outside of your price range.
Find a Realtor.
As with picking a Loan Officer, picking a Real Estate Agent also should not be taken lightly. As a Loan Officer, my tips for selecting an agent are:
- Avoid big real estate ‘teams’ – you never work with the big guy.
- Most major real estate company charge extra fees – Pick small independents
- Experience matters, A LOT.
Once you’ve selected your agent, they assist you in finding your dream house, negotiating a great offer, walking you through the paperwork, and helping with things like inspections.
TIP: Did you know that the buyers do not pay anything out-of-pocket for the working with an agent to buy a home. The cost of your agent is paid for by the seller.
Make a Home Wants and Needs Wish List.
Make a list of what you absolutely must have in your new home. Number of bedrooms, school district, etc., and let your Real Estate Agent know. Then also decide on things you can be flexible on. Unless you are building a custom home, no house will be a perfect fit.
Looking At Homes.
Typically your agent will set you up on automated email listing of new homes that fit your criteria. Especially in the under $300,000 price point, you should look at those emails daily, and if you see something you like, you need to be prepared to drop everything, and go immediately look at the house. Waiting for the weekend or a day off, and you may have been just beaten out by someone else.
As you look at homes, you may find your wants/needs list can change. Be sure to pass that along to your agent.
Ready to get started?
It’s easy. Simply complete the Online application. You’ll be applying directly with me, Joe Metzler, an experienced, multiple award winning Loan officer with over 20-years in the the business. We lend in MN, WI, and SD. Learn more about me HERE.